Question-and-Answer Session
Operator
Our first question comes from David Bank – RBC Capital Markets.
David Bank – RBC Capital Markets
As usual a couple of questions here; I’ll go through them as quick as I can. The first one is Bob, could you give us a little more color in terms of what you saw in the first quarter for CPM growth and what you’re seeing in the second quarter as the page decline is decelerating, which looks like good news, I just want to see on the CPMs.
The second is could you give a little bit more clarity on where the charges were, the $1.1 million in restructuring and $0.4 million unrealized losses. We see the $0.6 million on the income statement related to the e-commerce stuff. I’m not sure where the others are.
Can you also tell us on the E-commerce revenue losses, from the restructuring, is there a seasonality to that, like not a huge number, but what’s the seasonality?
Alex, the consumer is definitely being hit right now, but the License business is still relatively immature, so is there any particular category that’s getting hit? What do you see as the re-igniter of double digit growth? What’s the biggest obstacle here and when do you think you could see a turn? Thanks.
Christie Hefner
Thanks David. Linda, why don’t you speak to the charges question first?
Linda Havard
Sure. David the severance was actually in the publishing results; there was $600,000 in the publishing operating results. There is that $450,000 in other net, which is where the unrealized losses on the foreign currency contracts show up.
$600,000 of restructuring charges are related to the E-commerce and those are termination of contracts, so those are the three lines that are impacted.
I also mentioned in my comments that when you look at quarter-to-quarter comparison, this quarter had lower E-commerce contribution as a result of the one-time inventory charge, but that also did affect revenues in E-commerce.
David Bank – RBC Capital Markets
Okay.
Christie Hefner
On the CPM question, David, that’s, I think, pretty straight forward. The CPM has not decreased as much as the rate base decreased, so we’re actually clawing back some of that rate-base decrease, and are pleased, as Bob mentioned, with the quarter-over-quarter, second to first quarter growth in advertising. So hopefully that clarified it.
David Bank – RBC Capital Markets
So you guided page growth down 5%, but you’re looking at growth overall, which would imply certain material increases in CPMs right?
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